Spring Market Fueled by Buyer Demand D
espite a continued inventory crisis, April was a strong month for home sales, with buyer activity remaining high, fueled by continued low interest rates. Throughout the state, there were 10,083 closed sales for the month of April, up 33.4 percent over April 2020, which was the height of the pandemic. The average 30year fixed-year mortgage rate was 3 percent, as of May 25, 2021, which has helped buyers remain positive in their home searches, despite being limited in their options.
Closed Sales
In most areas of the state, properties are moving fast. The percent of list price received passed 100 percent this month, with 101 percent of list price received noted for April 2021, a 2.9 percent increase over April 2020. The average number of days a property was on the market in April was just 43 days, down 29.5 percent from 61 days in April 2020. Inventory is at historic lows, with just two months of inventory remaining in April, down a staggering 53.5 percent from April 2021, where the market had already been impacted by the ongoing
Inventory
pandemic. The number of homes for sale throughout the state in April (single-family homes, townhomes and condominiums, and adult community properties) was just 23,680—down 40.9 percent over last year. Still, buyer activity is high over last year. For 2021 so far—January through April—pending sales are up 36.7 percent to 43,437; closed sales are up 22.6 percent to 37,327; new listings are up 7.3 percent to 51,547; and, notably, the median sales price was up 20 percent to $375,000.
New Listings
April 2020 (7,559)
April 2020 (4.3)
YTD 2020 ( 48,035 )
April 2021 (10,083)
April 2021 (2.0)
YTD 2021 (51,547)
+33.4%
–53.5%
+7.3%
Pending Sales
Days on Market
Median Sales Price
YTD 2020 (31,775)
April 2020 (61)
YTD 2020 ($312,500)
YTD 2021 (43,437)
April 2021 (43)
YTD 2021 ($375,000)
+36.7%
–29.5%
+20%
“The numbers validate the story we’ve been hearing over and over,” said 2021 New Jersey Realtors® President Jeff Jones. “But it’s important to remember that a lot of these numbers are comparable to the height of the pandemic last year when a lot of business stalled. As more and more restrictions are lifted and homeowners become more comfortable, we remain hopeful there will be new inventory hitting the market. Even with these hurdles, buyers are attracted to low-interest rates and continue to stay in the market.” 26 | NEW JERSEY REALTOR® | July/August 2021
